CBN Holds Rate Steady Amid Easing Inflation Trends

During its 304th session held in Abuja, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) opted to retain the monetary policy rate at 26.5%, despite expectations from analysts for a 50 basis point cut. CBN Governor Olayemi Cardoso indicated that while inflation is on a declining trend, caution is necessary due to potential fiscal risks that could push inflation higher.

The committee noted that Nigeria's headline inflation rate decreased to 15.10% in January 2026, down from 15.15% in December 2025, marking the eleventh consecutive month of decline. Food inflation also fell to 8.89% in January 2026.

The MPC emphasized the importance of maintaining stability in the foreign exchange market and improving external buffers, while also recognizing the risks associated with fiscal releases and increased liquidity that could threaten the disinflation trend.